WIM 2024 campaign
he International Organization of Securities Commissions (IOSCO), a global standard setter for the securities market, organized World Investor Meet 2024. The key themes for discussion were:-
1) Technology and Digital Finance,
2) Crypto Assets and
3) Sustainable Finance
Topics of fraud,scam prevention, investor resilience and basics of investing were also discussed in the meet along with key themes.
Participated
IOSCO members, international organizations and other relevant stakeholders participated in the meet. The meet became the platform for discussing internationally recognized standards for securities regulations.
How to use digital tools
The meet 2024 conveyed several useful messages focusing on measures to be adopted when taking investment decisions. The meet conveyed the message that a smart investor understands how to use digital tools that can help with their finances, moreover he knows that those tools do not prevent loss or fraud, but they must continue
to conduct independent, thorough research on every investment opportunity.
Online informations
While getting informations online, a smart investor knows how to test the veracity of the information. When taking investment decision it is important to distinguish legitimate versus inaccurate sources of information
online.
Finfluencer's role
The meet 2024 opined that finfluencers having conflicts of interest may promote online by receiving payment from a company. Such category finfluencers cannot know the personal
circumstances of their followers, so their recommendations could be
unsuitable while taking investment decision and finally cause loss to investors.
Use of technology
According to the meet a smart investor realize the potential negative influence which may arise from the use of technologies, such as artificial
intelligence, and other digital features like gamification and metaverse on their investment actions. Accordingly informed investors understand the inherent risks associated with practices such as Digital Engagement Practices, Copy Trading, and Fractional Trading and how they align with personal risk tolerance.
The meet opined that a good investor understands that digital tools can make investment process quick and easy. He understands its appropriate use could help to take more informed investment decisions. According to the meet a smart investor researches and understands the investments and strategies embedded in Digital Engagement Practices, Copy Trading, and Fractional Trading practices before committing funds. The meet urged to engage with reputable platforms that have transparent practices and licensing. Finfluencers role is common in today's capital market worldwide but a smart investor knows how to distinguish between finfluencers who create content for
educational purposes and those who create only for commercial interest. A smart investor doesn’t follow finfluencer’s recommendations without verifying their profile including their education, experience, and credentials.
Crypto assets
A smart investor understands the investment products and risks associated with crypto assets. A prudent investor recognizes that fraudsters, including transnational criminal organizations actively seek to take advantage of investor interest
in crypto assets to encourage them to “invest” and steal their money because crypto assets can be irrevocably transferred overseas in minutes. Therefore the meet warned that due diligence is required when involving crypto assets and reminded that many crypto asset participants are operating outside of, and/or in non complying relevant regulatory norms.Therefore a detailed verification as to whether the crypto asset transactional platform is registered, licensed, or otherwise authorized to operate within the jurisdiction in which it is offering
products or services.
Sustainable finance
A smart investor recognizes that sustainable finance may be referred to in many different ways, such as environmental, social, and governance (ESG) investing, socially
responsible investing, and impact investing. Therefore such investors reviews an investment's disclosure documents to see how relevant disclosures weigh various ESG or sustainable finance factors.Such investors Considers whether an investment's stated approach to sustainable finance
matches the investor's investment goals, objectives, risk tolerance, and
preferences. They evaluates each sustainable finance investment opportunity as unique and on
its own terms.
The World Investor Week 2024 conveyed following message.
- Checks whether an investment professional is licensed.
- Researches investment opportunities independently before investing.
- Avoids "get rich quick" and "can't lose" schemes by slowing down their decision-making and asking many questions.
- Understands that expected returns can’t be guaranteed. The promise of “guaranteed” (extremely) high returns with little or no risk is a common red flag and should raise concerns.
- Distrusts anyone who tries to pressure them into making hurried investment decisions.
- Never feels rushed and ignores over-the-top sales pitches and pressure to invest right on the spot.
- Gets suspicious of requests to wire money out of the country.
- Never discloses personal information on an unexpected call or other
- Ensures the use of strong passwords and good data security practices such as two-factor authentication on accounts containing financial data.
- Is skeptical of unsolicited investment offers through social media.
- Verifies the source of any investment information found on the internet.
- Focuses on the impact of inflation on purchasing power and uses real rates of return to assess investment performance.
- Understands the way asset classes may behave in a persistent inflation environment and the impact on their attractiveness.
- Recognizes the importance of diversification, especially with respect to protecting investments from losses from a single, unexpected event.
- Weathers negative financial shocks with an adequate emergency fund.
- Understands that risk exists in all investments.
- Plans for life’s unexpected challenges with budgeting strategies to manage risk,
- reduce the impact of inflation, and avoid high-interest debt.
- Recognizes the early warnings of investment fraud and understands what they are putting their money into (‘Look before you leap’).
- Recognizes the benefit of long-term, regular, and diversified investment.
- Plans for and invests according to their future needs and goals.
- Recognizes the power of compound interest.
- Assesses the impact of fees when choosing an investment.